HEALTHCARE PREDICTIVE ANALYTICS MARKET ANALYSIS

The global healthcare predictive analytics market was valued at US$ 2,730.2  Mn in 2021 and is forecast to reach a value of US$  5,235.6  Mn by 2028 at a CAGR of 9.8% between 2022 and 2028. The global healthcare predictive analytics market is experiencing strong growth due to the rising burden of chronic diseases, emergence of personalized and evidence-based medicine, increasing need of increasing efficiency in healthcare sector, and increasing demand to curtail healthcare costs by reducing unnecessary costs. However, lack of robust infrastructure and lack of properly trained it professionals in healthcare are major factors expected to hamper growth of the healthcare predictive analytics market.

Global Healthcare Predictive Analytics Market: Regional Insights

Based on geography, the global healthcare predictive analytics market is segmented into North America, Latin America, Europe, Asia Pacific, and Middle East & Africa.

Among regions, North America is expected to witness robust growth in the global healthcare predictive analytics market over the forecast period owing to the increasing number of chronic disease cases and increase in adoption of healthcare predictive analytics solutions in the region. For instance, predictive analytics helps find out the likelihood of individuals developing certain medical conditions. According to the U.S. Centers for Disease Control and Prevention (CDC), chronic diseases are the leading causes of death and disability in the United States.

Asia Pacific is also expected to witness significant growth in the global healthcare predictive analytics market due to the increase in prevalence of chronic diseases and increase in adoption of healthcare IT solutions in the region. For instance, two in every three senior citizens in India suffer from some chronic disease, according to the Longitudinal Ageing Study in India (LASI) released by the Union Ministry of Family and Health Welfare in January 2020. This in turn is expected to increase the use of healthcare predictive analytics solutions in the region.

Figure 1. Global Healthcare Predictive Analytics Market Share (%), by Region, 2022

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Global Healthcare Predictive Analytics Market Drivers:

Rising burden of chronic diseases on a global level is expected to augment growth of the global healthcare predictive analytics market over the forecast period. Healthcare predictive analytics can be used to improve disease management and an understanding of the spread and trajectory of disease as well as providing appropriate medical care to the patient for best outcomes. For instance, worldwide, chronic diseases are the leading causes of death and disability, according to the World Health Organization (WHO).

Growing need of increasing efficiency in the healthcare sector is expected to boost the growth of the healthcare predictive analytics market during the forecast period. For instance, predictive analytics help improve the efficiency of personnel & other available resources in the healthcare sector. In March 2021, Health Catalyst, Inc. announced the launch of the new Healthcare.AI. Created to address healthcare business opportunities and challenges across revenue, cost, and quality, Healthcare.AI suite of augmented intelligence products and services will significantly expand the effective use and use cases of AI in healthcare.

Global Healthcare Predictive Analytics Market Opportunities:

Increase in demand or adoption of healthcare predictive analytics is expected to offer lucrative growth opportunities for players in the healthcare predictive analytics market. For instance, in March 2022, Databricks announced the launch of lakehouse platform, named the Databricks Lakehouse for Healthcare and Life Sciences, for data management, analytics and advanced AI use cases like disease prediction, medical image classification, and biomarker discovery. GE Healthcare, Walgreens, ThermoFisher, and Regeneron are some early adopters.

Increasing cost of healthcare is expected to provide significant growth opportunities for players in the global healthcare predictive analytics market. For instance, predictive analytics can help reduce healthcare costs & improve quality of care. Using continuous monitoring and predictive analytics can cut medical costs by nearly US$ 535,000 annually, according to an economic data model from Medtronic (July 2021). According to the study, continuous monitoring could result in $ 535,531 annual hospital cost savings for a median-sized U.S. hospital.

Global Healthcare Predictive Analytics Market Trends:

Healthcare providers use predictive analytics solutions to understand disease management, risk management, disease prevalence and trajectories, and provide appropriate medical care to the patient for optimal outcomes. It is being used by the healthcare providers to estimate the risk percentage to an individual’s health, as well as predict the future outcomes in advance. Its usage at various levels to prevent unnecessary expenditure has increased adoption of this technology, and the trend is expected to continue during the forecast period. This in turn is expected to aid in the growth of the global healthcare predictive analytics market.

Global Healthcare Predictive Analytics Market Restraints:

Lack of skilled IT professionals in healthcare is expected to hamper the growth of the global healthcare predictive analytics market. For instance, the shortage of skilled professionals is the major contributor to the ailing healthcare system. The shortage of skilled professionals will continue for a limited period of time as more & more data analysts are being trained on various aspects of data storage, prediction, and analysis. The lack of IT workers has forced healthcare to recruit IT help from other industries.

Lack of robust (healthcare) infrastructure is expected to hinder growth of the global healthcare predictive analytics market. With lack of robust infrastructure and growing renewal investment needs, the demand for more accurate and robust prediction models is also increasing. Robust infrastructure is a key for effective operations and scalability of any project. This is proving to be a major restraining factor in the market.

Figure 2. Global Healthcare Predictive Analytics Market Share (%), by Product, 2022

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Global Healthcare Predictive Analytics Market Segmentation:

The healthcare predictive analytics market report is segmented into Application, Component, Deployment, End-User, and Region.

Based on Application, the market is segmented into Clinical Data Analytics, Financial Data Analytics, Administrative Data Analytics, and Research Data Analytics. Out of which, Clinical Data Analytics Segment is expected to dominate the healthcare predictive analytics market over the forecast period and this is attributed to the rising burden of chronic diseases across the globe. Healthcare data analytics can be applied to every aspect of patient care and operations management. It helps improve the provision of clinical care, enhancing disease prevention, and measuring the effectiveness of various treatment options.

Financial Data Analytics Segment is also expected to witness significant growth in the near future and this is due to growing need of increasing efficiency in healthcare sector. Healthcare providers/organizations that leverage data analytics have access to relevant clinical, financial and operational data, and can transform this data into actionable information that can improve decision-making and overall performance.

Based on Component, the market is segmented into Software, Hardware, and Services. Out of which, Software Segment is expected to dominate the market over the forecast period and this is attributed to the increase in adoption healthcare analytics solutions. Healthcare analytics software processes and analyzes the vast amounts of data that a healthcare provider regularly collects into actionable insights that affect operating profit and patient outcomes.

Hardware Segment is also expected to witness significant growth in the near future and this is owing to the increase in usage of healthcare analytics to reduce healthcare costs and improve quality of care. Healthcare providers/organizations use parallel processing or better hardware to scan large amount of data quickly.

Based on Deployment, the market is segmented into On Premise and Cloud Based. Of which, Cloud Based Segment is expected to dominate the market over the forecast period and this is attributed to the increase in adoption of cloud based analytics solutions. Cloud based solutions enabled healthcare providers and patients to access information anytime worldwide, and help increase efficiency and reduce the cost of deploying valuable IT infrastructure.

Based on End User, the healthcare predictive analytics market is segmented into Healthcare Providers, Industry, and Research Institutions. Out of which, Healthcare Providers Segment is expected to dominate the market over the forecast period and this is attributed to the increase in adoption of healthcare predictive analytics solutions. Healthcare analytics is being used by healthcare providers to estimate the risk percentage to an individual’s health, as well as predict the future outcomes in advance.

Global Healthcare Predictive Analytics Market: Key Developments

In December 2020, Amazon Web Services (AWS) launched Amazon HealthLake, which is a HIPAA-eligible service that aims to support interoperability standards and further drive the use of big data analytics in healthcare.

In August 2020, Quantzig announced the launch of advanced clinical data analytics solutions to help healthcare, pharma, and life science companies lead their way out of the pandemic with data-driven insights.

Global Healthcare Predictive Analytics Market: Key Companies Insights

The healthcare predictive analytics market is highly competitive. This is attributed to the rise in demand for or adoption of healthcare IT solutions, as a result, market players are focusing on launching novel products in the market.

Some of the key players in the global healthcare predictive analytics market are

Optum, Inc., Health Catalyst, Allscripts Healthcare Solutions, Medeanalytics, Inc., Mckesson Corporation, Oracle Corporation, Cerner Corporation, Information builders, and International Business Machines Corporation (IBM), among others.

*Definition: Healthcare analytics is defined as the effective use of data and related business insights built through predictive, qualitative, cognitive, and other employed analytical models. Predictive models can help keep patients healthier by anticipating the need for emergency care or the likelihood of a serious condition before it develops.